What Would Happen to Aggregate Demand If the Federal Government

question 121

Multiple Choice

What would happen to aggregate demand if the federal government increased military purchases and state and local governments increased their road building budgets at the same time?

• A)​AD would increase.
• B)​AD would increase, because only federal government purchases affect AD.
• C)​AD would increase only if the change in federal purchases were smaller than the change in state and local purchases.
• D)​AD would decrease only if the change in federal purchases was smaller than the change in state and local purchases.

---

Definitions:

Congruence

In psychology, refers to the alignment or agreement between an individual's self-concept and reality.

Intended Message

The specific information or feeling that a communicator aims to convey to the listener or reader.

Management Training

Programs or courses designed to improve the skills, knowledge, and competencies of individuals in managerial roles.

Subordinates

Employees or team members who are lower in rank or position and report to a superior in a hierarchical organization.